Real Estate Koh Tao Thailand
Real Estate Koh Tao Thailand
Property Financing for Foreigners in Thailand

Financing Real Estate and Condominium Property

Are you thinking of buying a luxurious villa in Thailand? Are you ready to make an investment in real estate in Thailand? You can obtain attractive financing of up to 70% of the purchase price or valuation price – whichever is lower. You will enjoy greater financial flexibility with a long repayment period of up to 20 years. Please contact us for details on your home financing today.

Terms and Conditions for the Financing of Residential Property in Thailand with the purpose to finance the purchase of freehold real estate property in the Kingdom of Thailand.

Loan Quantum: Can be up to 70% of the purchase price

Maximum Loan Amount: USD 8,000,000 or equivalent amount

Minimum Loan Amount: USD 100, 000 or equivalent amount

The Draw-down quantum shall be the lower of:

1) Amount as per approved limit

2) Up to 70% of purchase price of property, when converted at our prevailing exchange rate upon drawdown

3) 90% of appraised value upon completion (For property under construction) or up to 70% of appraisal value (For completed property) by our appointed valuer

Security: Legal mortgage of property to be financed

Loan Tenure: Max 20 years

Currency: The loan shall be dominated in SGD, USD, EUR or JPY

Interest Rate (Subject to Changes at Bank’s Discretion)

Loan in SGD – Bangkok Bank’s Prime Lending Rate per Annum (currently 6%)

Loan in USD-USD Prime + 0.5 % per annum (currently 8.25% + 0.5 % = 8.75%)

Loan in EUR-EUR Prime +1% per annum (currently 7.25% + 1% = 8.25%)

Loan in JPY – JPY Prime + 1.25 per annum (currently 2.85% + 1.25 % =4.10%)

Repayment: Repayment of principal and interest is by monthly installment and to commence once month from date of disbursement of loan.

Drawdown: Loan shall be drawdown only upon payment by the borrower of the difference between the purchases price and the loan amount, subject to completion of loan documents and fulfillment of the conditions precedent

Prepayment: Prepayment of loan allowed subject to payment of 1.5% flat rate on the loan amount to be prepaid

Processing Fee: Processing Fee of USD 1,750 is payable in two stages;

a) USD 150 or its equivalent is payable upon submission of loan application. This sum of USD 150 is non-refundable

b) USD 1,600 or its equivalent is payable upon acceptance of our letter of offer

Amendment Fee

Additional non-refundable fee of USD 120 or its equivalent shall be imposed for re-process of application if there’s any amendment to the loan request after the approval of facility

Expenses

All expenses such as legal/mortgage costs/valuation fee and fire insurance premium etc shall be payable by borrower

Required Documents

  1. Completed Mortgage Loan Application Form
  2. Copy of I.D. card (front and back)/passport (essential pages)
  3. Signed copy of Sales and Purchase Agreement or Reserve Agreement
  4. Band’s reference letter addressed to Bangkok Bank Public Co Ltd confirming banking relationship, conduct type of account and size of loan/deposit with the bank
  5. Last 6 months bank statements
  6. Credit Bureau Report from country of residence
  7. For Salaried Individuals; Employer’s letter addressed to Bangkok Bank Public co Ltd confirming position, Years of Service and remuneration/ Last 2 years’ income Tax return/ Last 6 months’ computerized pay-slip
  8. For self-employed Individuals; Last 2 years’ Balance Sheet Profit & Loss Statements/ Last 2 years’ Income Tax Return
  9. Other upon request

Please Note:

The above does not constitute an offer, an invitation to offer, a solicitation or recommendation to enter into or conclude any transaction and is issued for information and discussion purposes only. The terms are subject to changes without prior notice. Actual transactions are handled according to the actual circumstance of each case. Final terms may differ and loan approval is subject to evaluation of applicant’s financial standing, repayment ability and at the bank’s discretion.



Acquisition of Land in the Kingdom of Thailand

The law about acquisition of land by foreigners in Thailand states that certain requirements have to be fulfilled and we have listed them below.

Acquisition of Land in the Kingdom of Thailand for Residential Purpose by Foreigners

A foreigner who is bringing money, not less than forty million Baht as specified in the Ministerial Regulation, into the Kingdom for investment may apply for acquisition of land for residential purpose. Not more than one rai in area. Provided also that permission has been obtained from the Minister. Under section 96/bis of the Land Code, the application for such an acquisition of land shall be in accordance with rules, procedures and conditions prescribed in the Ministerial Regulation as follows:

1. In the case of a foreigner, who brings money for investment and wishes to apply for permission to acquire land for residential purpose, shall lodge an application (Alien 4 Form) to the competent official under section 71 of the Land Code together with the following documents:

1.1 An alien identification card issued by the Police Station in whose jurisdiction the foreigner is domiciled or a certificate of residence issued by the Immigration Division, National Bureau of the Royal Thai Police Force or a passport indicating the nationality of the foreigner.

1.2 Evidences of an investment in the business or activity that falls under Ministerial Regulation prescribing rules, procedures and conditions concerning the acquisition of Land for residential purpose by aliens B.E. 2545.

1.2.1 Letter of investment confirmation from bond seller and bonds of Thai Government, bonds of Bangkok of Thailand, bonds of State Enterprise or bonds which the Ministry of Finance secures the capital or interest.

1.2.2 Letter from the Asset Management Company confirming that an alien has invested in property mutual fund, property mutual fund or mutual fund for resolving financial institution problems established under the law on Securities and Stock Exchange, and an evidence of investment in such fund.

1.2.3 Evidences concerning investment in share capital of a juristic person who is granted promotion of investment under the law on promotion of investment, certificate of registration as a juristic person, name list of the juristic person’s share holders, and a certificate indicating that such juristic person is granted promotion of investment from the Board of Investment.

1.2.4 Evidences of engagement in an activity that entitles for being granted promotion of investment under the law on promotion of investment according to the announcement made by the Board of Investment, certificate of registration as a juristic person, name list of the juristic person’s share holders, and the Board of Investment’s letter indicating that an activity being operated entitles for being granted promotion of investment.

The evidences mentioned in paragraph. 1.2.1 – 1.2.4 either the evidence in one paragraph, or one combined with the other(s) can be used but the total amount shall be not less than forty million Baht.

1.3 Evidences of bringing a foreign currency into the Kingdom or the withdrawal of the money from a foreign currency account or from a non-resident Baht account for investment.
Either one or more of the above mentioned evidences can be used but the total amount shall be not less than Baht forty million.

1.4 In the case of the land to be acquired is not located in Bangkok Metropolis, Pattaya City or Tessaban (Municipality); the letter of confirmation from the Provincial Office of Town and Country Planning is required certifying that the land to be acquired is located within a residential zone under the law on Town Planning.

1.5 Letter of Ministry of Defense or of the agency concerned confirming that such land is not located in a military safety zone under the law on Military Safety Zone.

1.6 The sketchy map showing the location of land seeking for permission.

1.7 In the case where an applicant has already had right on land by the time the application is being lodged, an applicant shall produce such land right document.

2. A person who is granted permission shall maintain the investment period not less than five years. He/she is required to produce the evidence of possession in the investment in 1.2 as the case may be as current, which shall be not less than Baht forty million, to the competent official according to section 71 once a year, on five consecutive years and each year shall be no later than the date making the acquisition registration of the aforementioned land.

3. A person who is granted permission shall utilized such land for a residential purpose of his/herself and the family in a way that is not contrary to the local custom or good living of the local community.

4. A person who is granted permission shall inform such land utilization for a residential purpose to the competent official of land office according to section 71 within sixty days as from the date of utilization.

5. A person who is granted permission shall facilitate the competent official supervising the use of such land to ensure that the utilization is in accordance with rules and conditions prescribed in the law once he/she receives the written notifications from the competent official under section 71.

6. If a person granted permission withdraws an investment in the business or activity before the due date of investment in 2, he/she shall inform in writing to the competent official according to section 71 within sixty days as from the date of making the withdrawal.

7. A person granted permission shall utilize such land for residential purpose within two years as from the date of the land acquisition registration.

8. If a person granted permission does not comply with the rules and conditions in 2-6, the Director General shall have the power to order such person to dispose of the land in a portion of his possession within the period of not less than one hundred eighty days and not more than one year. If the time limit elapses the Director General shall have the power to dispose of such land. Also, if the person does not comply with the condition in 7, the Director General shall have the power to dispose of such land.

9. Any foreign language document shall be translated into Thai language. The translation shall be certified according to the Ministerial Regulations (B.E. 2540) issued under the Purview of Administrative Procedure Act B.E. 2539. (Phraratchabunyat Vithipratibut Ratchakarn Thangpokkhrong B.E. 2539)

10. In case of a person bringing money into the Kingdom to the amount of Baht forty million for investment and has bought the land less than 1 rai, if later and within the period of investment, that person wishes to buy additional land, in this instance, the documents attached to the current investment can be used along with the application for acquisition of the additional land.



Conversion Table for Land Measurement in Thailand

LAND MEASUREMENT CONVERSION FOR THAILAND
Land in Thailand is measured in rai, ngan and wah. Land prices are expressed in baht per rai or baht per wah for smaller plots. The tables below will help you convert measurements:
1 sq. wah = 4 sq. m.
1 acre = 2.471 rai or 43,560 sq. ft.
1 ngan = 100 wah or 400 sq. m.
1 hectare = 6.25 rai or 10,000 sq. m.
1 Rai = 4 Ngan or 1600 sq. m.

sq. Wah

sq. ft.

sq. m.

Ngan

Rai

Acre(s)

Hectare(s)

1

43

4

100

4,305

400

1

0.25

0.10

0.04

400

17,222

1,600

4

1

0.40

0.16

800

34,444

3,200

8

2

0.80

0.32

1,200

51,667

4,800

12

3

1.20

0.48

1,600

68,888

6,400

16

4

1.60

0.64

2,000

86,111

8,000

20

5

2.00

0.80

2,400

103,333

9,600

24

6

2.40

0.96

2,800

120,555

11,200

28

7

2.80

1.12

3,200

137,777

12,800

32

8

3.20

1.28

3,600

155,000

14,400

36

9

3.60

1.44

4,000

172,222

16,000

40

10

4.00

1.60

32,000

80

20

8

3.20

48,000

120

30

12

4.80

64,000

160

40

16

6.40

80,000

200

50

20

8.00

96,000

240

60

24

9.60

112,000

280

70

28

11.20

128,000

320

80

32

12.80

144,000

360

90

36

14.40

160,000

400

100

40

16.00